Cash Cows

Updated Aug. 29, 2005 12:01 a.m. ET

Table: Buyout Bait?

While software revenue growth has slowed considerably in recent years, many companies now rake in fat high-margin revenue streams by providing maintenance. That's attracted the attention of rivals looking to add customers, as well as private-equity buyers in search of steady cash flows. Here, software companies are ranked by the ratio of enterprise value to net income from maintenance. Among those high on the list are frequently cited M&A targets like Siebel and BEA.